{"id":1398,"date":"2019-08-20T18:29:01","date_gmt":"2019-08-20T12:59:01","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=1398"},"modified":"2020-01-09T16:42:41","modified_gmt":"2020-01-09T11:12:41","slug":"income-tax-rules-for-nri","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/","title":{"rendered":"Income Tax and Income Tax Rules for NRI"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Non-resident Indian is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. Thus, in order to determine whether an Individual is a <a href=\"https:\/\/aktassociates.com\/blog\/nri-status-taxation\/\">Non-resident Indian<\/a> or not, his residential status is required to be determined. As per section 6 of the Income-tax Act, an individual is said to be Non-Resident in India if he is not a Resident in India. An individual is deemed to be Resident in India in any previous year if he satisfies any of the following conditions:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">He is in India for a period of 182 days or more during the relevant previous year; Or<\/span><\/li>\n<li><span style=\"font-weight: 400;\">He is in India for a period of 60 days or more during the relevant previous year and 365 days or more during 4 years immediately preceding the relevant previous year.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1405 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-NRI-Blog-image.jpg\" alt=\"Income tax NRI \" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-NRI-Blog-image.jpg 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-NRI-Blog-image-300x171.jpg 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-NRI-Blog-image-20x11.jpg 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">However, condition No. 2 does not apply where an individual being a citizen of India <\/span><span style=\"font-weight: 400;\">who leaves India, as members of the crew of an Indian Ship or leaves India for employment outside India during the previous year or an Indian citizens or persons of Indian origin who, being engaged outside India in any business or employment, comes to visit India during the previous year.<\/span><\/p>\n<p><strong>Tax incidence or Taxability of Non-Resident shall cover the following topics relevant to a Non-Resident.<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Scope of Taxation<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Taxable Income of NRI under various heads of Income<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Special provisions applicable to NRI<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Deductions and Exemptions available to NRI<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">TDS applicable to NRI<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Applicability of Advance Tax Payment to NRI<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">DTAA<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"font-weight: 400;\">Is<a href=\"https:\/\/aktassociates.com\/blog\/income-tax-return-filing\/\"> Income Tax Return<\/a> (ITR) to be filled by the NRI and what is the due-date<\/span><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Scope_of_Taxation\" title=\"Scope of Taxation:\">Scope of Taxation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Taxable_Income_of_NRI_under_various_heads_of_Income\" title=\"Taxable Income of NRI under various heads of Income\">Taxable Income of NRI under various heads of Income<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Salaries\" title=\"Salaries\">Salaries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Income_from_House_Property\" title=\"Income from House Property\">Income from House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Income_from_Other_Sources\" title=\"Income from Other Sources\">Income from Other Sources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Income_from_Business_and_Profession\" title=\"Income from Business and Profession\">Income from Business and Profession<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Income_from_Capital_Gains\" title=\"Income from Capital Gains\">Income from Capital Gains<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Long_Term_Capital_Gain\" title=\"Long Term Capital Gain\">Long Term Capital Gain<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Tax_Rates_applicable_to_the_Long-Term_Capital_Gain_and_income_arising_from_the_above_assets_sec_115E\" title=\"Tax Rates applicable to the Long-Term Capital Gain and income arising from the above assets (sec 115E)\">Tax Rates applicable to the Long-Term Capital Gain and income arising from the above assets (sec 115E)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Certain_conditions_to_be_fulfilled_while_computing_the_LTCG_and_Interest_Income_under_sec_115D\" title=\"Certain conditions to be fulfilled while computing the LTCG and Interest Income under sec 115D:\">Certain conditions to be fulfilled while computing the LTCG and Interest Income under sec 115D:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Exemption_allowed_under_sec_115F\" title=\"Exemption allowed under sec 115F:\">Exemption allowed under sec 115F:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Conditions_to_be_fulfilled_to_claim_the_exemption\" title=\"Conditions to be fulfilled to claim the exemption:\">Conditions to be fulfilled to claim the exemption:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Sec_115H_The_above_provisions_of_Chapter_XII-A_shall_apply_even_if_NRI_becomes_a_Resident\" title=\"Sec 115H: The above provisions of Chapter XII-A shall apply even if NRI becomes a Resident:\">Sec 115H: The above provisions of Chapter XII-A shall apply even if NRI becomes a Resident:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Sec115I_The_provisions_of_Chapter_XII-A_are_optional_for_the_NRI\" title=\"Sec115I: The provisions of Chapter XII-A are optional for the NRI:\">Sec115I: The provisions of Chapter XII-A are optional for the NRI:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Deductions_and_Exemptions_allowed_to_NRI\" title=\"Deductions and Exemptions allowed to NRI:\">Deductions and Exemptions allowed to NRI:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Deductions_under_Chapter_VI-A\" title=\"Deductions under Chapter VI-A.\">Deductions under Chapter VI-A.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Deductions_available_and_not_available_to_NRI_under_Sec_80C\" title=\"Deductions available and not available to NRI under Sec 80C.\">Deductions available and not available to NRI under Sec 80C.<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#_Below_are_the_Other_Deductions_that_are_allowed_to_NRI\" title=\"\u00a0Below are the Other Deductions that are allowed to NRI:\">\u00a0Below are the Other Deductions that are allowed to NRI:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Deduction_which_is_not_allowed_to_NRI\" title=\"Deduction which is not allowed to NRI:\">Deduction which is not allowed to NRI:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Exemptions\" title=\"Exemptions:\">Exemptions:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#TDS_applicable_to_NRI\" title=\"TDS applicable to NRI:\">TDS applicable to NRI:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Applicability_of_Advance_Tax\" title=\"Applicability of Advance Tax:\">Applicability of Advance Tax:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#The_benefit_of_the_Double_Taxation_Avoidance_Agreement\" title=\"The benefit of the Double Taxation Avoidance Agreement:\">The benefit of the Double Taxation Avoidance Agreement:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Filing_of_Return\" title=\"Filing of Return:\">Filing of Return:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Date_of_filing_the_Return\" title=\"Date of filing the Return:\">Date of filing the Return:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Penalty_for_failure_of_filing_statement_of_compliance\" title=\"Penalty for failure of filing statement of compliance:\">Penalty for failure of filing statement of compliance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Advance_Ruling_%E2%80%93_NRI\" title=\"Advance Ruling \u2013 NRI:\">Advance Ruling \u2013 NRI:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#NRI_setting_up_a_business_in_India\" title=\"NRI setting up a business in India?\u00a0\">NRI setting up a business in India?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#The_crux_of_Indian_transfer_pricing_rules\" title=\"The crux of Indian transfer pricing rules:\">The crux of Indian transfer pricing rules:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Fund_Transfer_between_NRE_Account_to_another_NRE_Account\" title=\"Fund Transfer\u00a0 between NRE Account to another NRE Account:\">Fund Transfer\u00a0 between NRE Account to another NRE Account:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Scope_of_Taxation\"><\/span><b>Scope of Taxation:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Any income which is received or deemed to have been received in India or any income which accrues or arises or is deemed to accrue or arise in India shall be taxable in the hands of the Non-Resident (NRI). Any income which accrues or arises to an NRI outside India shall not be taxable in his hands in India.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Taxable_Income_of_NRI_under_various_heads_of_Income\"><\/span><b>Taxable Income of NRI under various heads of Income<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Salaries\"><\/span><b>Salaries<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">As per sec 9(1)(ii), Salary Income of an NRI from services rendered in India shall be deemed to accrue or arise in India.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">As per sec9(1)(iii) Salary received by an Indian citizen from the Govt of India for services rendered abroad shall be deemed to accrue or arise in India, however, perquisites and allowances received from the Govt. of India shall be exempt.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Income_from_House_Property\"><\/span><b>Income from House Property<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Income from House Property situated in India shall be taxable in the hands of the NRI. The computation of the income from house property shall be calculated in the same manner as in the case of a Resident.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Standard deduction of 30% on the Net Annual value shall be available.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The NRI can claim the benefit of deduction available in respect of interest on loan borrowed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The NRI can claim the deduction under sec 80C in respect of the repayment of the principal amount of the loan borrowed.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Income_from_Other_Sources\"><\/span><b>Income from Other Sources<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Interest on Savings A\/c and Fixed Deposits held in India shall be taxable in the hands of the NRI. Interest received on NRE and FCNR A\/c. shall be tax-free. Interest received on NRO A\/c. shall be taxable.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In respect of interest on debentures, bonds issued by Indian Concerns or Indian Govt. TDS shall be deducted at appropriate rates.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Dividend received from Indian company shall be exempt.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Income_from_Business_and_Profession\"><\/span><b>Income from Business and Profession<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Any Income arising to NRI from any Business or Profession controlled from India shall be taxable in the hands of the NRI in India.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Income_from_Capital_Gains\"><\/span><b>Income from Capital Gains<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Any Capital Gain arising on the transfer of any capital asset situated in India shall be taxable in India.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Capital Gain arising on the sale of shares or securities of an Indian Concern shall be taxable in India.<\/span><\/li>\n<\/ul>\n<p><b>Special Provisions Applicable to NRI under Chapter XII-A <\/b><b>(This provision is optional for the NRI) <\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Long_Term_Capital_Gain\"><\/span><b>Long Term Capital Gain<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Long Term Capital Gain to NRI on sale of Foreign Exchange Assets i.e.any of the below assets acquired in Foreign Currency<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Shares of Indian Company (Public\/Private)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Debentures of Indian Public Company<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Deposits with ab Indian Public Company<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Securities of Central Govt.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Any other asset as may be notified by the Central Govt.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Rates_applicable_to_the_Long-Term_Capital_Gain_and_income_arising_from_the_above_assets_sec_115E\"><\/span><b>Tax Rates applicable to the Long-Term Capital Gain and income arising from the above assets (sec 115E)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/b> <b>Tax Rates<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Nature of Income<\/b><\/td>\n<td><b>Tax Rates<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Long Term Capital Gain (LTCG)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other Income<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Normal Tax Rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Certain_conditions_to_be_fulfilled_while_computing_the_LTCG_and_Interest_Income_under_sec_115D\"><\/span><b>Certain conditions to be fulfilled while computing the LTCG and Interest Income under sec 115D:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">First, provision to sec 48 i.e. the Capital Gain in respect of the above assets which are acquired in foreign currency by way of purchase or reinvestment shall be calculated in Foreign currency and it shall be reconverted into Indian Currency.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">\u00a0The second<\/span><span style=\"font-weight: 400;\"> provision to sec 48 i.e. Benefit of Indexation shall not be available<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Deduction under Chapter VI-A (under sec 80) shall not be available<\/span><span style=\"font-weight: 400;\">\u00a0 <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Deduction in respect of any expenditure incurred to earn the interest income shall not be allowed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Normal provisions of Income Tax Act shall apply to in case of Other Income<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Exemption_allowed_under_sec_115F\"><\/span><b>Exemption allowed under sec 115F:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The LTCG arising on the sale of above FOREX assets shall be exempt if the Net Consideration (Sale proceed \u2013 Cost of Transfer) is utilized for acquiring other FOREX assets within 6 months from the date of transfer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amount of exemption: LTCG X <\/span><span style=\"font-weight: 400;\">Cost of New Asset.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net Sale Consideration.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conditions_to_be_fulfilled_to_claim_the_exemption\"><\/span><b>Conditions to be fulfilled to claim the exemption:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The New asset should not be transferred within a period of 3 years from the date of acquisition. If the new asset is transferred then the LTCG which was earlier exempt shall be taxable in the year in which the asset is transferred.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Sec_115H_The_above_provisions_of_Chapter_XII-A_shall_apply_even_if_NRI_becomes_a_Resident\"><\/span><b>Sec 115H: The above provisions of Chapter XII-A shall apply even if NRI becomes a Resident:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If the NRI becomes a resident he can file a declaration with the return of income of AY in which he becomes a resident stating that he wants to continue to be governed by the provisions of chapter XII-A. This chapter shall apply until the transfer or conversion of FOREX assets into money.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sec115I_The_provisions_of_Chapter_XII-A_are_optional_for_the_NRI\"><\/span><b>Sec115I: The provisions of Chapter XII-A are optional for the NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The NRI can pay tax on LTCG and Interest income at normal tax rates instead of 10% and 20%.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Deductions_and_Exemptions_allowed_to_NRI\"><\/span><b>Deductions and Exemptions allowed to NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Deductions_under_Chapter_VI-A\"><\/span><b>Deductions under Chapter VI-A.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Deductions_available_and_not_available_to_NRI_under_Sec_80C\"><\/span><b>Deductions available and not available to NRI under Sec 80C.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Under sec 80C NRI can claim deductions in respect of the following up to \u20b91.5 Lakhs.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Deduction<\/strong><\/td>\n<td><strong>Availability<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Life Insurance premium paid in respect of NRI, his spouse and children<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Premium should not exceed 10% of the Policy amount (sum assured)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tuition Fee paid for full-time education in India (maximum 2 children)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Repayment of Loan taken from Banks and Financial Institutions for purchase or construction of House Property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contribution towards Unit Linked Insurance Plan (ULIP)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Investment in Equity Linked Savings Schemes (ELSS)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Investment in PPF (New A\/c. as Non-resident cannot be opened. PPF A\/c. opened when NRI was a resident shall be allowed to be maintained)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Investment in National Saving Certificates (NSC)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Senior Citizen Saving Scheme<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Post Office 5 Year Time Deposit schemes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Deposit in Sukanya Samridhi Scheme (for the benefit of the girl child)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"_Below_are_the_Other_Deductions_that_are_allowed_to_NRI\"><\/span><span style=\"font-weight: 400;\">\u00a0<\/span><b>Below are the Other Deductions that are allowed to NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><b>Sec 80D<\/b><span style=\"font-weight: 400;\">&#8211; medical insurance premium paid for the health of NRI, spouse, parents and dependent children up to \u20b925 Thousand and up to \u20b950 Thousand in case medical insurance policy is taken on the life of senior citizen shall be allowed.<\/span><\/li>\n<li><b>Sec 80E<\/b> \u2013 Interest paid on higher education loan of self, spouse or children. Deduction in respect of interest shall be allowed for a period of 8 consecutive years beginning from the year in which NRI starts paying interest.<\/li>\n<li><span style=\"font-weight: 400;\">Sec 80G \u2013 NRI\u2019s can claim a deduction in respect of certain eligible donations made for a social cause.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sec 80TTA- NRI\u2019s can claim a deduction to the extent of \u20b910 Thousand in respect of interest on savings account with an Indian bank, Co-op Banks or Post Office.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Deduction_which_is_not_allowed_to_NRI\"><\/span><b>Deduction which is not allowed to NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Sec 80CCG &#8211; <\/b><span style=\"font-weight: 400;\">Investment in Listed Equity shares or Listed units of Equity oriented Fund under the Rajiv Gandhi Equity Savings Scheme.<\/span><\/p>\n<p><b>Sec 80DD <\/b><span style=\"font-weight: 400;\"><strong>&#8211;<\/strong> Deduction in respect of medical treatment and maintenance of handicapped dependent relative.<\/span><\/p>\n<p><b>Sec 80DDB &#8211;<\/b><span style=\"font-weight: 400;\"> Deduction in respect of the medical treatment of specified disease for Self or dependent.<\/span><\/p>\n<p><b>Sec 80U <\/b><span style=\"font-weight: 400;\"><strong>&#8211;<\/strong> Deduction for the handicapped assessee.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exemptions\"><\/span><b>Exemptions:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Particular<\/b><\/td>\n<td><b>LTCG on Sale of Residential House Property (sec 54)<\/b><\/td>\n<td><b>LTCG on sale of any Long Term Capital Asset other than Residential House Property (Sec 54F)<\/b><\/td>\n<td><b>LTCG on the Sale of Long Term Capital Asset and the sale proceeds are invested in certain bonds (Sec 54EC)<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Nature of Asset<\/b><\/td>\n<td><span style=\"font-weight: 400;\">LTCA being a Residential House Property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Any LTCA not being Residential House Property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">LTCA being Land, Building or both<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>New Asset to be purchased or constructed<\/b><\/td>\n<td><span style=\"font-weight: 400;\">One residential House Property in India<\/span><\/td>\n<td><span style=\"font-weight: 400;\">One residential House Property in India<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Bonds redeemable after 5 years issued by National Highway Authority of India, Rural Electrification Corp Ltd., Power Finance Corp. Ltd., Indian Railway Finance Corp. Ltd. (the maximum amount that can be invested &#8211; \u20b950 Lakhs within the prescribed time limit<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Time Limit for Purchase of New Asset<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Within 1year before or 2 years after the date of transfer or constructed within 3 years after the date of transfer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Within 1 year before or 2 years after the date of transfer or constructed within 3 years after the date of transfer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Within 6 months from the date of transfer of original asset<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Amount of Exemption<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Capital Gains or Cost of New Asset\/(Amount deposited in Indian Bank if Asset not purchased) whichever is lower<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cost of New Asset <\/span><b>X<\/b><span style=\"font-weight: 400;\">Capital Gains<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Net Sales Consideration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Capital Gains or Cost of New Asset whichever is lower<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Transfer of New Asset<\/b><\/td>\n<td><span style=\"font-weight: 400;\">If the new asset is transferred within a period of 3 years from the date of purchase or construction, then the exemption earlier allowed shall be withdrawn in the year of transfer i.e. the cost of acquisition of new asset shall be reduced by the exempted capital gains<\/span><\/td>\n<td><span style=\"font-weight: 400;\">If the new asset is transferred within a period of 3 years from the date of purchase or construction, then the exempted capital gain shall be taxable as LTCG in the year of transfer of the new asset<\/span><\/td>\n<td><span style=\"font-weight: 400;\">If the new asset is transferred or converted into money within 5 years from the date of acquisition, then the exempted capital gain shall be taxable as LTCG in the year of transfer or conversion of the new asset<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Although TDS is deducted @20% in case of LTCG on sale of House property, the NRI can claim the refund of the TDS (refund arising on account of exemption available on the sale of house property) in the return of income filed by him.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"TDS_applicable_to_NRI\"><\/span><b>TDS applicable to NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">TDS is deducted on any income earned by the NRI in India. TDS shall be deducted even if the income is below the taxable limit of \u20b92.5 Lakhs. NRI can claim the refund of this TDS in the Return of Income filed by him. Below is a list of income earned by the NRI in India and the TDS rates applicable for the same.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Nature of Income<\/b><\/td>\n<td><b>TDS Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rent earned from Property in India<\/span><\/td>\n<td><span style=\"font-weight: 400;\"> 30%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sale of Property located in India<\/span><\/td>\n<td><span style=\"font-weight: 400;\">LTCG (Property held for more than 2 years) \u2013 20% STCG (Property held for less than 2 years) \u2013 30%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest earned on NRO A\/c.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest on infrastructure debt bonds<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest from Govt. or an Indian concern on money borrowed in Foreign Currency<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Dividend paid by Indian Co.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Exempt (if DDT paid by the company)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Royalty and Fees for Technical Services received from the Govt. or any Indian Concern in pursuance of an agreement which is approved by the Govt<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10% or as per DTAA whichever is beneficial to the NRI<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sale of Equity shares (STT paid on purchase and sale)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">LTCG- 10% on LTCG in excess of \u20b91Lakh<\/span><\/p>\n<p><span style=\"font-weight: 400;\">STCG- 15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Sale of Equity Oriented Mutual Funds (STT paid on transfer of units)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">LTCG- 10% on LTCG in excess of \u20b91Lakh<\/span><\/p>\n<p><span style=\"font-weight: 400;\">STCG- 15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Long Term Capital Gain under sec 115E<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest income under sec 115E<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Any other income not covered in the above heads<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Surcharge and Cess shall be added to the rate of TDS.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Applicability_of_Advance_Tax\"><\/span><b>Applicability of Advance Tax:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If the liability of Advance tax is \u20b910 Thousand or more, then NRI is required to pay Advance Tax. Failure to pay Advance Tax shall attract interest payment under sec 234B and 234C.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_benefit_of_the_Double_Taxation_Avoidance_Agreement\"><\/span><b>The benefit of the Double Taxation Avoidance Agreement:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Double Taxation means the same income is taxed twice. If there is a Double Taxation Avoidance Agreement between India and the country of residence of the NRI then the income of NRI shall be taxed in one country and exempted in other countries. If there is no DTAA between India and country of residence then the income of NRI shall be taxed in both the countries and the country of residence shall allow the credit of the tax paid in the country of source of Income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose Mr. A an NRI earns Royalty or Fees for Technical Services in India. Such an Income shall be taxable in India because it is earned in India and at the same time it shall be taxed in the country of residence of Mr. A. If India has entered in to a Double Taxation Avoidance Agreement with the country of residence of Mr. A, then TDS of 10% or the DTAA rate whichever is favorable to the NRI shall be applicable. To claim the benefit of DTAA the NRI will have to furnish the Tax Residency Certificate issued by the authorities in the country of residence of the NRI.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Filing_of_Return\"><\/span><b>Filing of Return:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\u00a0As per sec 115G if the Total Income of NRI includes only LTCG and Interest Income under the special provisions of sec 115D then Return of Income is not required to be filed by the NRI.<\/li>\n<li><span style=\"font-weight: 400;\">If the Total Income of the NRI includes income other than LTCG and Interest Income from foreign exchange assets and it exceeds \u20b92.5 Lakhs then Return of Income is required to be filed by the NRI.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Date_of_filing_the_Return\"><\/span><b>Date of filing the Return:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The return should be filed by NRI by 31<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> July of the Assessment Year.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Penalty_for_failure_of_filing_statement_of_compliance\"><\/span><b>Penalty for failure of filing statement of compliance:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">INR 100\/day for each day the non-compliance continues<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/aktassociates.com\/business-compliance\/yearly-compliance\/it-return-filing\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1406 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-on-time-Banner-image-1.png\" alt=\"Income tax on time \" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-on-time-Banner-image-1.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-on-time-Banner-image-1-300x64.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/08\/Income-tax-on-time-Banner-image-1-20x4.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advance_Ruling_%E2%80%93_NRI\"><\/span><b>Advance Ruling \u2013 NRI:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many of NRIs are not aware of the Advance Ruling provision that is more popular among the corporates. Its come is the picture when in the case of disputes arises between 2 parties or high-value transactions. Moreover, it helps in Planning Tax Liability in Advance and to avoid certain tax-related disputes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other words, if any matter arises before NRI while transacting with Resident, then NRI can resort to ADVANCE RULING.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accordingly, NRI can apply to ADVANCE RULING relating to tax issue matters.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"NRI_setting_up_a_business_in_India\"><\/span><b>NRI setting up a business in India?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Establishment of business in India may lead to various Tax and Legal issues, And among them, transfer pricing is one of the major tax laws for handling such conflicts in-laws.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As NRI are not well concerned with the complexity arise while setting up of business in an Indian country as well as Resident Country.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_crux_of_Indian_transfer_pricing_rules\"><\/span><b>The crux of Indian transfer pricing rules:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Transfer pricing refers to the Mechanism to regulate the Specified domestic T<\/span><span style=\"font-weight: 400;\">ransaction and International Transactions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fund_Transfer_between_NRE_Account_to_another_NRE_Account\"><\/span><b>Fund Transfer\u00a0 between NRE Account to another NRE Account:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Amount can be transferred from one Non-resident external account to another<a href=\"https:\/\/aktassociates.com\/blog\/nre-nro-account\/\"> NRE account<\/a> with no more Tax issues. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The amount can be transferred from NRE account to<a href=\"https:\/\/aktassociates.com\/blog\/nre-nro-account\/\"> NRO account<\/a> of the same party or another and even Amount can be transferred from NRE account to normal savings deposit account of another resident Indian.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The above points covered with respect to NRI taxation need to be adhered to by NRI as the benefit of deductions, exemptions and DTAA shall help them in better tax planning.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Non-resident Indian is an individual who is a citizen of India or a person of Indian origin and who is &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Income Tax and Income Tax Rules for NRI\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/#more-1398\">Read more<span class=\"screen-reader-text\">Income Tax and Income Tax Rules for NRI<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":1407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[107],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Income Tax for NRI and Income Tax Compliance | AKT Associates<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aktassociates.com\/blog\/income-tax-rules-for-nri\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Income Tax for NRI and Income Tax Compliance | AKT Associates\" \/>\n<meta property=\"og:description\" content=\"Non-resident Indian is an individual who is a citizen of India or a person of Indian origin and who is ... 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